By OGJ editors
HOUSTON, Sept. 26 -- China and EurOrient Financial Group have signed an agreement for construction of an LNG receiving terminal and related facilities in Rizhao City in Shandong province.
The proposed terminal is one of only 10 LNG projects to be commissioned in China along the costal cities for the next 10 years by the state council.
The Rizhao terminal will have an initial capacity of 1.5 million tonnes/year of LNG. It will include a transshipment terminal and one or two storage tanks, pipelines, and gas distribution facilities. It will supply gas to Rizhao City and the greater Qingdao territory.
With estimated cost of more than $965 million, the project will be financed and developed in phases. The first phase will handle as much as 500,000 tonnes of LNG. EurOrient is considering various countries as suppliers, including Australia, Indonesia, Malaysia, Qatar, Oman, Bolivia, and Russia.
Pending receipt of a construction permit by December 2007, construction of the terminal is expected to start during first quarter 2008.
EurOrient said it is considering the Rizhao Lanshan Port as a possible location for the terminal.